Devices & Diagnostics, MedCity Influencers, Sponsored Post

Assessing what’s happening in ENT (Ear, Nose and Throat)

This post is sponsored by International Business Forum. An Interview with Donald Gonzales, Founder of […]

This post is sponsored by International Business Forum.
An Interview with Donald Gonzales, Founder of Entrigue Surgical

Q: What are the key areas of opportunity in the ENT market and why are they promising?
A: Currently, the key areas of interest are sinus disease and obstructive sleep apnea. Treatment of sinus disease has made dramatic changes over the past several years. The latest advance has been the use of balloons to dilate the openings to the sinuses. This has made it feasible to perform some sinus procedures in the clinic.  Obstructive sleep apnea is the other large untapped area. CPAP, positive pressure airway worn at night, works well, but has a very low compliance rate. At this time, there are very few surgical options for patients, leaving the majority untreated. We are just now starting to understand many of the mechanisms of sleep apnea and this has resulted in the potential for new therapies. There are other areas in ENT that are promising, yet have been completely overlooked and untapped. Otology (ear related disorders) and laryngology (diseases of the throat) remain a challenge for treatment and represent the new, emerging markets.

Q: How big are the market opportunities?
A: Otolaryngologists treat a large number of chronic disorders. Chronic sinusitis afflicts around 20 million Americans. Yet, treatment has remained primarily medical resulting in the number one reason for antibiotic treatment in the U.S. With only 500,000 receiving surgical treatment, there remains a very large gap to fill with minimally invasive therapies that could result in less antibiotic usage. Obstructive sleep apnea is an even larger (and growing) market with few options. Currently, there are approximately 20-30M people in the US with OSA. Although CPAP works well, if given the option, a large percentage would choose another therapy that has a high rate of success.

Q: Why hasn’t there been much attention to innovative treatment until recently?
A: Until very recently, investors have seen ENT as a small market. There have been very few acquisitions in the past decade, so comparables were nonexistent. With so little activity in the field, very few investors had knowledge regarding the ENT market. From the physician’s point of view, we had become reliant on advances in other fields and adapting them to our needs. Attention to the market has changed only in the last few years. Venture capitalists began to take note with funding of a few medical device companies, mainly centered on sinusitis treatment. Last year, attention to the field increased dramatically with the $785M acquisition of Acclarent by Johnson and Johnson. This acquisition gave legitimacy to the field.

Q: Who stands to gain?
A: The pre-existing companies with an ENT sales force will gain by acquisitions of these venture backed companies. There are only a few, now, but would be the ultimate target acquirer and be able to increase revenue. Alternatively, other large players are starting to get into the field and will be hungry for deals to feed their new sales force. Ultimately, the funders and start-ups with a deep knowledge of this specialty will gain the most. There still remain many unmet needs in this field that will need to be understood and developed.

To learn more about ENT innovation and market opportunities, consider attending the ENT Innovation Summit in San Francisco on September 13th — www.entsummit.com.


International Business Forum

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